PERS Rate Stabilization Fund

BackgroundIn the Fall of 2013, the City of Healdsburg began a Strategic planning process to help guide city leaders in planning for the future. The strategic plan will guide our opportunity to implement action plans on several fronts. Initiative number four of the strategic plan is Fiscal Responsibility. One of the City Council goals developed out of the strategic plan for FY 2015-16 is Fiscal Responsibility. A piece of the Fiscal Responsibility goal was to establish a funding policy for the City's unfunded pension liability. The PERS Rate Stabilization Fund was created to smooth out the annual contribution rates and provide the ability to stabilize future pension cost increases over the long term.

Council ActionsOn August 3, 2015 the Council: (1) approved participation in the Public Agencies Post-Employment Benefits Trust Program, and (2) Created an oversight committee of two Council members to develop the investment policy. The policy will be brought forward for Council adoption at a future meeting.

PresentationsThe City engaged the services of John Bartel, President of the actuarial consulting firm, Bartel and Associates, LLC to evaluate the PERS actuarial issues facing the City. Mr. Bartel presented his firm’s findings to the City Council on April 21 and his recommendations on June 1, 2015.